Cross Research Downgrades Dell to a Sell

5/30 - "Dell reported unit share gains (total units up 22%) in all geographies, driven they believe by aggressive pricing and at the expense of margin. Assuming component pricing increases somewhat (as most companies are now expecting) and emerging markets sales continue to increase, the firm believes gross margin will be difficult to maintain/or improve."

"...they think significant, positive quarterly earnings surprises will be required to provide much upside to the share price. With exposure to the US, potential for a slowdown overseas, need to fund the enterprise leasing business (potential drag on earnings and significant use of cash) and apparent aggressive pricing required to drive revenue growth, they are lowering their rating to Sell with a price target of $19."

"I think DELL may be a short here below $24."